Prices for the same coin are not always identical everywhere at once. One exchange might briefly show bitcoin a little cheaper than another, or a token might trade at slightly different prices on two decentralised exchanges. An arbitrageur spots the gap, buys on the cheaper venue and sells on the dearer one, pocketing the difference. In doing so they also push the two prices back toward each other, which is why arbitrage helps keep markets consistent.
In practice these gaps are usually small and short-lived, because many participants, increasingly automated bots, are hunting the same opportunities. Real profits have to survive trading fees, network gas costs, transfer times and the risk that the price moves before both legs of the trade complete. What looks like easy money on paper is often razor-thin once those frictions are counted.
Arbitrage is worth understanding even if you never do it, because it explains why prices across exchanges tend to stay close, and it underlies more advanced on-chain techniques. As with everything on Crypto House, this is education about how markets work, not a strategy recommendation. In crypto specifically, gaps between a centralised exchange and an on-chain pool, or between two chains linked by a bridge, are common places these fleeting opportunities appear.
Key takeaways
- Arbitrage profits from the same asset trading at different prices on different markets.
- It helps align prices across venues, since buying low and selling high narrows the gap.
- Gaps are usually small, fast-closing and eaten into by fees, transfer times and execution risk.
Arbitrage — perguntas frequentes
Is crypto arbitrage easy money?
Rarely. Price gaps are usually small and vanish quickly as bots and traders compete for them, and profits must survive fees, gas costs, transfer times and the risk of the price moving mid-trade. It is far harder than it sounds.
How does arbitrage keep prices in line?
By buying where an asset is cheap and selling where it is expensive, arbitrageurs push those two prices toward each other. This constant activity is a big reason the same coin trades at similar prices across exchanges.
Related terms
LiquidityOrder BookDecentralised Exchange (DEX)Centralised Exchange (CEX)Bitcoin Dominance Todos os termos →New to crypto, or filling in the gaps? Work through the essentials in Learn, browse every term A–Z, or see live prices for the coins these concepts power.